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    Time value / Present value

    Present Value Calculator

    What a future amount is worth today at a given discount rate, with an optional level payment stream. The building block every valuation starts from.

    Present value$50,835Discount factor0.5083From the lump sum$50,835
    Present value
    $50,835
    Lump sum plus annuity
    Discount factor
    0.5083
    over 10 years
    From the lump sum
    $50,835
    Future value discounted
    From the annuity
    $0.00
    Level payments
    Discounting
    The value of the same future amount at different rates.
    Discounting
    RatePresent value
    3%$74,409
    5%$61,391
    7%$50,835
    10%$38,554
    15%$24,718

    Doubling the rate more than halves a long-dated present value.

    Inspect the model
    Choose a quick result view, a scaled comparison, or the complete diagnostic set.
    Present value against time
    The discount bites hardest in the later years.
    Present value against time$0$22.4k$44.8k$67.2k$89.6k$112.0kY0Y0Y1Y1Y2Y2Y3Y3Y4Y4Y5Y5Y6Y6Y7Y7Y8Y8Y9Y9Y10Y10$
    Canonical equations
    The exact relationships implemented by this engine.

    PV = FV / (1 + r/n)^(nt) · The discount factor.

    PV = PMT · (1 − (1+i)^−n)/i · Level payments.

    PV = FV · e^(−rt) · The limit as n grows.

    finance methodology

    A clear path from inputs to results.

    What a future amount is worth today at a given discount rate, with an optional level payment stream. The building block every valuation starts from.

    Step-by-step methodWorked exampleAssumptions explained

    How to use

    1. Set future value ($).
    2. Set discount rate (%).
    3. Set years.
    4. Set compounding.
    5. Read the headline metrics, then check the table for the detail.

    The formula

    PV=FV/(1+r/n)(nt)PV = FV / (1 + r/n)^(nt)

    Reference: Discounted cash flow with the discount factor 1/(1 + r/n)^(nt) (Broverman, Mathematics of Investment and Credit).

    Worked example

    At the default inputs

    Inputs
    • Future value ($): 100000; Discount rate (%): 7; Years: 10; Compounding: annual; Annual payment ($): 0
    Calculation path
    1. 1

      Discount factor → 0.5083 Present value → $50,835

    Result

    Present value: $50,835 · Discount factor: 0.5083 · From the lump sum: $50,835

    Interpreting the result

    $100,000 in 10 years at 7.00% is worth $50,835 today.

    Assumptions & limitations

    • The discount rate is constant over the whole period.
    • Cash flows arrive at the end of each period.
    • No tax, inflation or credit risk is modelled separately.

    Frequently asked questions

    Why does the present value fall so fast?

    Discounting is exponential: at 7% a dollar in thirty years is worth about thirteen cents.

    What is the difference from NPV?

    NPV sums several present values; this discounts one amount plus an optional level payment.

    Is the discount rate the same as the interest rate?

    Often, but not necessarily — the discount rate should reflect the risk of the cash flow, not just the cost of money.

    Methodology last reviewed 2026-10-22. Results are informational and not financial or engineering advice — see our disclaimer.